Saks takes to the web for procurement of supplies and services
Saks Inc. has decided to take its procurement process high-tech. It will replace its paper-based procurement operation for 350 department stores with an Internet-based system from IBM Corp. The new e-sourcing service from IBM -- known as Leveraged Procurement Service-- will allow Saks employees to purchase operating supplies and services over the web.
IBM will use an Ariba B2B software system to develop 16 virtual online catalogs for Saks that will help company employees select strategic suppliers for these goods and services, as well as to negotiate prices for everything from pens and staplers to lighting products. The new service replaces a paper-based system that required the manual processing of thousands of transactions daily.
"With the new e-sourcing service from IBM, we`re not only simplifying the ordering process with a user-friendly application on employee desktops, but we`re leveraging our spend to gain maximum cost efficiency on the goods and services our employees use everyday," said Tom Wyatt, executive vice president of e-business strategies for Saks.
Saks, with $6 billion in annual revenue, operates department stores under the names of Proffitt`s, McRae`s, Younkers, Herberger`s, Carson Pirie Scott, Bergner`s, and Boston Store. The company also operates Saks Fifth Avenue Enterprises, which consists of 61 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and Saks Direct.
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